Kavango Resources PLC’s new foray into the Kalahari copper belt won’t distract it from upside at KSZ

It is an interesting addition to the () portfolio: a joint venture on two copper exploration licences just a couple kilometres absent from the floor famously worked up by MOD, Steel Tiger () and Sandfire ().

The official joint venture was signed in mid-February pursuing an preliminary memorandum of knowledge that was agreed in September of 2019. But it is not very likely to stop there.

“We’re in the method of putting with each other pretty a substantial land bundle in that place,” states Kavango’s main govt Mike Foster.

“We have designs to prolong our floor holding even further.”

Partly which is simply because of the enormous prospectivity of the parts Kavango is concentrating on, but it is also simply because of the beneficial reception the shift has received in the industry.

Soon after all, traders are only too cognizant of the convert Steel Tiger was able to make on its expenditure in the close by T3 undertaking, which was inevitably taken wholly-in property by MOD before MOD in convert was acquired by Sandfire.

The place is, states Foster, “one of the world’s most promising underneath-explored copper provinces

So, this is familiar territory for traders, and in the months following the MoU was 1st signed Kavango’s shares virtually doubled, though they have because fallen back again.

An exploration programme, which will get underway, should supply even further exciting newsflow and may however stimulate the industry even further.

In the meantime while, Foster, and non-govt director Mike Moles, are equally keen to emphasise that the company’s first undertaking – the one it was detailed on – continues to be important.

“The new copper floor does not always choose any of the pizazz absent from the Kalahari Suture Zone,” states Foster.

Moles agrees.

“We never want people to believe we have moved onto an additional undertaking,” he states. “I believe the determination is to give traders a fall-back again situation. The Kalahari Suture Zone has substantial risk, and no one else has received any success from there.”

But the matter about the KSZ is that allowing that it is substantial risk, the possible reward is similarly substantial. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the most important polymetallic projects anyplace in the world.

“Most of the other big bodies of gabbro in similar cases as KSZ do have big deposits of huge sulphides in them,” he states.

“Indeed, there could be a massive amount of huge sulphides.”

The trick is to come across them. To that stop, Kavango has by now undertaken an airborne geophysical study which has penetrated down to depths of 400 metres, floor electromagnetics, and it has performed some drilling.

“We are able to map,” states Moles. “We’re setting up up a photo.”

In a sense, he states, it is a box ticking physical exercise. “You know what requirements you want for a undertaking like Voisey’s Bay or Norilsk, you want to tock the proper bins, and so considerably we have. If we never come across a huge sulphide on KSZ, then any individual else will in the foreseeable future. But provided we can preserve funding, we believe we will.”

A lot more magnetic study do the job is prepared, in particular the deployment of a more substantial transmitter built to produce a more substantial latest and enable the organization to see previous all the salted groundwater which is previously interfered with the interpretation of facts. And following that there should be more drilling.

At the exact time, do the job on the copper floor will be starting to collect momentum, so all instructed, it seems to be like there should be a nutritious move of information about the coming calendar year. By the stop of that method the organization could seem pretty distinct in fact.